JB Hi-Fi lifts full-year profit

JB JB Hi-Fi has posted an 11.5 per cent increase in net profit to $152.2 million for the full year ending June 30, boosted by better sales on computers, visual, audio and accessories following the closure of Dick Smith stores.

Total sales growth for FY16 is 8.3 per cent to $3.95 billion with comparable sales up 5.4 per cent. Online sales saw a 35.8 per cent increase.

The retailer reported a 7.6 per cent increase for its 2017 sales target to $4.25 billion.

“We had a great finish to the financial year and we are proud to deliver both net profit and earnings per share up 11.5 per cent,” said Richard Murray, JB Hi-Fi CEO.

“Particularly pleasing was how we cycled a strong June in the prior year, with good sales driven by tax time buying,” Murray said.

The company completed an on-market buy-back in FY16 of 0.7 million ordinary shares (at a cost of $13.2 million), to offset the dilutionary impact of shaares expected to be issued to employees under the company’s share option plans in FY16.

By June 30, 2016, the consumer electronics retailer has opened 194 stores in Australia and New Zealand, and is expecting to open seven new stores in FY17. The company also announced it is continuing to review opportunities for its store rollout beyond 214 locations across Australia and New Zealand.

Murray said the sales result in July 2016 was a very pleasing start to FY17. Visual sales were particularly strong on the back of dedicated promotional activity launched on July 1. Other key growths Murray mentioned included Communications, Accessories and Home Appliances.

“The closure of DSE during the second half of FY16 has contributed to an increase in our sales of computers, visual, audio and accessories,” Murray said.

“We anticipate this will continue to drive sales growth in the first half of FY17; however, the impact will moderate as we cycle through their decline and eventual market exit.”

Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week. 

You have 7 articles remaining. Unlock 15 free articles a month, it’s free.